Carlos purchased an apartment building on November 16,2015,for $3,000,000.Determine the cost recovery for 2015.
A)$9,630
B)$11,910
C)$13,950
D)$22,740
E)None of the above

Question

Quizplus · Accepted Answer

The cost recovery, also known as depreciation, can only be claimed starting the month the property is available for rent. Since Carlos purchased the apartment building on November 16, 2015, it is unlikely that the property was available for rent for the rest of the month. Therefore, he is not entitled to claim any cost recovery for 2015. None of the answer choices is correct.

Carlos Purchased an Apartment Building on November 16,2015,for $3,000,000